NasdaqGM:LOVE

Stock Analysis Report

Executive Summary

The Lovesac Company designs, manufactures, and sells foam filled furniture, sectional couches, and related accessories.

Snowflake

Fundamentals

Excellent balance sheet with high growth potential.

Risks

  • Lovesac has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

How has Lovesac's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

17.6%

NasdaqGM:LOVE

1.0%

US Consumer Durables

1.3%

US Market


1 Year Return

2.9%

NasdaqGM:LOVE

14.0%

US Consumer Durables

2.0%

US Market

LOVE underperformed the Consumer Durables industry which returned 13.5% over the past year.

LOVE outperformed the Market in United States of America which returned 1.7% over the past year.


Share holder returns

LOVEIndustryMarket
7 Day17.6%1.0%1.3%
30 Day13.3%4.9%3.9%
90 Day-38.4%5.2%3.4%
1 Year2.9%2.9%15.6%14.0%4.2%2.0%
3 Yearn/a44.9%40.6%47.2%37.6%
5 Yearn/a35.5%26.9%60.5%42.9%

Price Volatility Vs. Market

How volatile is Lovesac's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lovesac undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Lovesac's share price is below the future cash flow value, and at a moderate discount (> 20%).

Lovesac's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Lovesac is loss making, we can't compare its value to the US Consumer Durables industry average.

Lovesac is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Lovesac, we can't assess if its growth is good value.


Price Based on Value of Assets

Lovesac is overvalued based on assets compared to the US Consumer Durables industry average.


Next Steps

Future Growth

How is Lovesac expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

71.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Lovesac's revenue is expected to grow significantly at over 20% yearly.

Lovesac's earnings are expected to grow significantly at over 20% yearly.

Lovesac's revenue growth is expected to exceed the United States of America market average.

Lovesac's earnings growth is expected to exceed the United States of America market average.

Lovesac's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Lovesac will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Lovesac performed over the past 5 years?

-46.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Lovesac does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Lovesac's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Lovesac's 1-year growth to the US Consumer Durables industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Lovesac has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Lovesac has efficiently used its assets last year compared to the US Consumer Durables industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Lovesac improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Lovesac's financial position?


Financial Position Analysis

Lovesac is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Lovesac's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Lovesac has no debt.

Lovesac currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

High level of physical assets or inventory.

Lovesac has no debt, it does not need to be covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Lovesac has sufficient cash runway for 1.7 years based on current free cash flow.

Unable to confirm if Lovesac has at least 1 year of cash runway based on growing free cash flows without relevant data.


Next Steps

Dividend

What is Lovesac's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Lovesac's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Lovesac's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Lovesac has not reported any payouts.

Unable to verify if Lovesac's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Lovesac has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Lovesac's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Shawn Nelson (42yo)

2.6yrs

Tenure

US$2,601,727

Compensation

Mr. Shawn David Nelson Founded LoveSac Alternative Furniture Co. (known as LoveSac Corporation) in 1998 and serves as the Chief Executive Officer and Director. Mr. Nelson is the lead designer of its patent ...


CEO Compensation Analysis

Shawn's remuneration is higher than average for companies of similar size in United States of America.

Shawn's compensation has increased whilst company is loss making.


Management Age and Tenure

2.6yrs

Average Tenure

55yo

Average Age

The tenure for the Lovesac management team is about average.


Board Age and Tenure

2.6yrs

Average Tenure

51yo

Average Age

The average tenure for the Lovesac board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$3,695,33431 May 19
Mistral Equity Partners LLC
EntityCompany
Shares107,485
Max PriceUS$34.38
SellUS$50,100,42731 May 19
SAC Acquisition LLC
EntityCompany
Shares1,457,255
Max PriceUS$34.38
SellUS$3,107,30831 May 19
SAC Acquisition LLC
EntityCompany
Shares172,150
Max PriceUS$18.05
SellUS$18,909,00028 May 19
Satori Capital, LLC
EntityCompany
Shares550,000
Max PriceUS$34.38
SellUS$863,69317 Nov 18
Satori Capital, LLC
EntityCompany
Shares47,850
Max PriceUS$18.05
SellUS$15,771,51202 Nov 18
Mistral Equity Partners LLC
EntityCompany
Shares873,768
Max PriceUS$18.05
SellUS$10,536,79602 Nov 18
SAC Acquisition LLC
EntityCompany
Shares583,756
Max PriceUS$18.05
SellUS$7,851,75002 Nov 18
Satori Capital, LLC
EntityCompany
Shares435,000
Max PriceUS$18.05

Ownership Breakdown


Management Team

  • Shawn Nelson (42yo)

    Founder

    • Tenure: 2.6yrs
    • Compensation: US$2.60m
  • Donna Dellomo (55yo)

    Executive VP

    • Tenure: 2.6yrs
    • Compensation: US$907.78k
  • Jack Krause (56yo)

    President & COO

    • Tenure: 4.7yrs
    • Compensation: US$1.29m
  • David Jensen

    CTO & Chief Information Officer

    • Tenure: 1.7yrs

Board Members

  • William Phoenix (60yo)

    Director

    • Tenure: 9.3yrs
  • Andrew Heyer (61yo)

    Chairman of the Board

    • Tenure: 2.6yrs
  • Shawn Nelson (42yo)

    Founder

    • Tenure: 2.6yrs
    • Compensation: US$2.60m
  • John Grafer (49yo)

    Director

    • Tenure: 2.3yrs
  • Jared Rubin

    Director

    • Tenure: 5.3yrs
  • Shirley Romig (41yo)

    Director

    • Tenure: 0.3yrs
  • Walter McLallen (53yo)

    Director

    • Tenure: 0.3yrs

Company Information

The Lovesac Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Lovesac Company
  • Ticker: LOVE
  • Exchange: NasdaqGM
  • Founded: 1998
  • Industry: Home Furnishings
  • Sector: Consumer Durables
  • Market Cap: US$298.041m
  • Shares outstanding: 14.54m
  • Website: https://www.lovesac.com

Number of Employees


Location

  • The Lovesac Company
  • Two Landmark Square
  • Suite 300
  • Stamford
  • Connecticut
  • 6901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LOVENasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 2018

Biography

The Lovesac Company designs, manufactures, and sells foam filled furniture, sectional couches, and related accessories. The company offers sactionals, such as seats and sides; sacs, including foam beanbag  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 00:33
End of Day Share Price2019/09/13 00:00
Earnings2019/08/04
Annual Earnings2019/02/03


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.